Automated teller machines (ATMs) have become an indispensable tool in banking. These machines provide the convenience of performing secure banking transactions without the need for a human operator. An ATM has a relatively small physical footprint and, as a result, may be placed in a variety of locations where in-person banking locations are not feasible or present. Additionally, ATMs may be programmed to function at any time of the day or night. Thus, customers may be able to perform withdrawals, deposits, and balance inquiries when their bank branch location is closed (e.g., during non-business hours).
ATMs are dependent upon financial cards for security and authentication. A financial card may include a number and a magnetic stripe encoding a unique identifier of the card. Traditional ATMs require the user to swipe or enter the financial card and a personal identification number (PIN) in order to perform a transaction. As financial cards have become ubiquitous among individual and business users, the prevalence of financial crimes has also increased. This is complicated by the fact that financial cards are sometimes used for other purposes (not linked to a financial transaction) such as identity verification.
In fact, financial cards are now commonly used to perpetrate identity theft. Identity theft accounts for billions of dollars in losses to businesses and individuals annually and is a leading form of financial crime in the United States. Using only a card number of a financial card (e.g., a debit card), it may be possible for a thief to withdraw money from an account or even to open one or more new credit lines in the name of the card owner. The increase in the usage and scope of financial cards, coupled with the sheer number of cards owned by the average user has contributed to a growing complexity for the user and an increased vulnerability to financial crime.